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In Portugal, cryptocurrencies could soon be taxed

Cryptophiles also have their tax havens. In Europe, among the countries that tax the least, or even none, the capital gains made by taxpayers with cryptocurrencies, we find Belgium, Luxembourg, Switzerland and Portugal. But that could soon change for the latter country. According to information from Portugal.com relayed by The corner newspaperTuesday, May 17, the new Portuguese Minister of Finance, Fernando Medina, announced that cryptocurrencies will soon be subject to tax.

Until now, the country considers cryptocurrencies as a means of payment and not an asset, even though they are not legal tender there, explains Le Journal du coin. In fact, their holders do not pay taxes or taxes on their winnings. Only companies that provide crypto services are actually taxed, between 28 and 35% on their capital gains. This could therefore soon change since the Portuguese government is considering taxing the gains generated by virtual currencies, without yet specifying the details of this taxation. Capital gains could also be subject to other taxes such as VAT or stamp duty, explains Le Journal du coin.

The contours of taxation not yet defined

The opposition Left Bloc (extreme left) party proposes that cryptocurrencies be subject to personal income tax, in the same way as other types of gain. The party would like the government (Socialist Party) to commit to stop making Portugal an “offshore of cryptocurrencies”: “It is incredible to see how the PS refuses to tax the fortunes created in a few seconds on the Internet while maintaining the VAT on electricity and by not increasing the minimum wage in the context of inflation”, lambasted an MP. If cryptophiles are all wealthy and earn a lot of money with just a few clicks on the Internet.

For the Secretary of State for Tax Affairs Antonio Mendonça Mendes, the taxation of cryptocurrencies is not so simple. It takes time because it requires evaluating “at the international level what is the definition of crypto-assets, which includes cryptocurrencies (…), the regulations in this area, whether in the fight against money laundering and market regulation, in order to present a legislative initiative that really serves a country in all its aspects, and not a legislative initiative that is the cover of a paper”, he defended himself. In France, gains made in cryptocurrencies must be declared in euros and are subject to the 30% flat tax. Capital recently explained how to optimize your tax return if you are in this case.

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